Page 26 - Nexia SAB&T Property & Tax Guide 2022

continue acting as a Property Practitioner under the Act, using such existing Fidelity
Fund Certificate, until the end of the year during which the effective date falls.
◆ Consumer protection – Property Defects Disclosure
❖ It is mandatory for sellers or lessors to provide a comprehensive property defects
disclosure document as part of a property transfer or lease, which will form part
of the sale or lease agreement, and no mandate may be accepted by a property
practitioner from a seller or lessor without this document, and a copy thereof must
be provided to a prospective purchaser or lessee of the property.
◆ Inspectors, Compliance Notices and Record Storage
❖ Inspectors may be appointed by the CEO of the Board of Authority. They may, at
any reasonable time, and without prior notice, warning or a warrant, conduct an
inspection at the business premises of any property practitioner in order to determine
whether the provisions of the Act have been complied with. If the property practitioner
conducts his business at his private residence, the inspector must notify the
property practitioner in advance and in writing. The inspector may issue compliance
notices- which could include the imposition of a fine. The property practitioner is
required to keep records, including correspondence, legal agreements, copies of
advertising and marketing materials, for 5 years. These can be stored electronically.
◆ Mediation, Adjudication and Appeal
❖ The Board of Authority may consider complaints by members of the public against
property practitioners in respect of financing, marketing, managing, letting, hiring
and the sale and purchase of property, and may refer the complaint for mediation.
Should a property practitioner have been served with a compliance notice and
has failed to comply, or to pay the fine stated therein timeously, or mediation has
failed, the Board of Authority may cause a notice of adjudication to be served
on that person. Any person aggrieved by the decision of adjudicator may appeal
against such a decision to the Adjudication Appeal Committee.

◆ Remuneration
❖ In order for a property practitioner to enforce the collection of remuneration
(commission), a valid Fidelity Fund Certificate must be held for all property
practitioners within the agency or business – and failure to have it may require
the property practitioner to refund any commission paid by the seller. Agents may
only receive commission from a property sale on registration (and this requirement
cannot be amended by agreement). A conveyancer may not pay any remuneration or
other monies to a property practitioner unless that property practitioner has provided
the conveyancer with a certified copy of his, her or its Fidelity Fund Certificate, valid
during the period, or on the date of the transaction to which the payment relates.
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